Solana (SOL) made headlines early Tuesday morning when a major holder purchased 34,807 coins worth over $4 million in a single transaction.
This transaction triggered a 4.26% jump in SOL price and a 41% increase in trading volume over the past 24 hours.
Solana whales use different strategies
Earlier today, the Solana whale purchased 34,807 SOL tokens worth $4.52 million as part of its ongoing accumulation strategy. Since February, the whale has withdrawn approximately 207,000 SOL worth over $29 million into self-custody. Following Tuesday’s acquisition, they have staked 115,135 SOL tokens worth a total of $15.3 million.
Meanwhile, another whale has taken a more bearish stance. On-chain sleuth Lookonchain has tracked the whale’s consistent selling habits through a series of posts on X.
On Tuesday, the address sold 20,000 SOL tokens worth $2.66 million. Since the beginning of the year, this whale has sold 715,000 SOL worth about $102 million. Despite these sales, the whale still holds a significant stake of 1.84 million SOL worth about $246 million.
Read More: Solana (SOL) Price Prediction 2024/2025/2030
Amid these contrasting whale actions, SOL has risen 5% in the last 24 hours, reflecting increased market activity. In the derivatives market, trading volume has increased 35% as participants have taken on more long positions. According to Coinglass, SOL’s funding rate on crypto exchanges has remained positive since the weekend, standing at 0.0043% at press time.
A positive funding rate, used in perpetual futures contracts to keep prices in line with spot prices, indicates greater demand for long positions. This suggests that more traders are accumulating SOL in anticipation of higher prices than those betting on a decline.
SOL Price Prediction: Coin Eyes Expects 17% Growth
At the current price of $135.197, SOL is slightly above its short-term resistance at $133.37. Its rising relative strength index (RSI) indicates a steady increase in demand for the altcoin.
If this demand continues, the SOL rally will continue. The coin’s price could jump by 17% to $159.90.
Read More: 11 Best Solana Meme Coins to Watch in August 2024
However, if profit taking intensifies, SOL could give up some of its recent gains, potentially falling to $109.66. SOL last traded at that level on August 5, when more than $1 billion in liquidated positions left the market.
